Mavent Obtains Innovative Technology Patent for Mortgage Compliance
July 31, 2008
Mavent Inc.,a provider of automated regulatory compliance solutions to the mortgage industry, has been awarded a U.S. patent for technology used for compliance with consumer credit regulation.
The issuance of the patent—originally drafted nearly a decade ago—is particularly timely given growing concern in the financial and institutional sectors about rising foreclosures and related credit problems.
“Heightened regulatory scrutiny and intense consumer advocacy is driving up the cost of mortgage compliance. Yet, mortgage lenders’ budgets are shrinking,” said Louis Pizante, CEO of Mavent. “For the growing number of institutions seeking to implement an automated compliance strategy, this patent is an essential factor to consider.”
The patent covers systems, software programs and methods of use for businesses that originate and close loans secured by real estate in order to audit such loans for compliance with state and federal laws and regulations.
Licenses to utilize the patent are currently available to Mavent clients as a component of its integrated services. Mavent is also considering providing licenses to interested financial institutions and mortgage-related companies that may presently be infringing on the patent.
“Mavent’s early success in establishing this market has allowed us to maintain our market leadership and dominance, as well as continues to position us at the forefront of a developing automated compliance marketplace,” added Pizante. “As the pioneer of automated compliance solutions, this type of protected innovation will allow us to continue to deliver superior value to our clients.”
The patented technology underpins Mavent’s automated compliance solutions, including the Mavent Expert System, the Mavent Compliance Console (MC2), custom-client automated compliance engines (ACEs), its lender and broker license verification and monitoring service, and other compliance risk management solutions Mavent provides to lending institutions.
Mavent analyzes electronic loan data to determine whether a loan complies with more than 300 federal and state consumer protection laws related to mortgage lending. Mavent has performed more than 25 million compliance reviews and its clients include five of the 10 largest lenders and seven of the top 10 investors.
The adverse economic impact that non-compliant loans can have on a lender’s business, including regulatory fines and penalties, class action litigation and adverse publicity (headline risk), has resulted in strong demand for Mavent’s automated compliance solutions. Currently, the combined forces of increased consumer protection scrutiny and shrinking budgets industry-wide are allowing Mavent to deliver significantly greater value to its clients.
Unlike other offerings that have one-size-fits-all automated compliance tools, Mavent is the only organization with a patented technology that performs comprehensive and thoroughly vetted compliance audits that are specific to the regulations that govern a particular institution and loan transaction.
Mavent’s compliance rules are maintained by its in-house attorneys in coordination with, and subject to ultimate approval by, its network of nationally recognized law firms. Accordingly, a Mavent review replicates an audit performed by a team of the industry’s most knowledgeable legal experts, but at a fraction of the time and cost.
Mavent's patent portfolio also includes other patents pending.